Los Angeles Fire and Police Pensions (LAFPP) is proposing to end its $55m (€53m) mortgage-backed securities relationship with Semper Capital Management and transfer the capital to GIA Partners, an existing manager.
LAFPP, which made the recommendation in a meeting document, cited Semper Capital’s SEC fine as part of the reason for planning to end the relationship.
In 2020, SEC announced that New York-based Semper Capital had agreed to pay $503,228 to settle charges that it misled investors about the performance of its Semper MBS Total Return Fund, an open-end investment company, and caused the overvaluation of certain of the fund’s securities.
LAFPP said it also has concerns regarding the expertise of Semper Capital’s current operations personnel, adding that inconsistencies in some information that Semper Capital has provided to LAFPP have also prompted the pension’s recommendation to end the relationship.
LAFPP also disclosed in the meeting document that it intends to acquire up to two properties via its separate account relationship with AEW Capital Management in the current fiscal 2023 year which started on 1 July.
The AEW account’s portfolio comprises a combination of office, industrial, retail and apartment buildings located across the US.
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